Title defects are problems that occur with the transfer of ownership of a property from one party to another. While these issues (also called clouds on title) may range from wills that have been probated incorrectly to boundary disputes, one of the most common title defects is recording errors on deeds.
Even when proper protocols are strictly followed in the recording of deeds, there is always the chance for human error. Read on to learn about some of the most common types of recording errors and how these issues are often corrected.
Types of Recording Errors
Recording errors on deeds may occur in one of the following ways:
-Misspelling of a name
-Omission of information
-Incorrect legal description
What Is the Correction Process?
When a recording error on a deed is detected, a title agent or attorney may take steps to have the deed corrected. This process will vary according to the type of error that has been identified, but may include one or more of the following actions:
-Submitting a new deed (quitclaim or Warrantor’s deed)
-Completing a corrective deed
-Filing a corrective affidavit
-Tendering other legal instruments to correct the error
Protecting Against Title Defects
Owner’s title insurance is a type of indemnity policy that helps protect a homeowner’s financial interest in a property should a title defect be identified at any point after closing. These plans may remunerate the homeowner should the property be lost to another party whose legal claim to the said property is valid. An owner’s title insurance policy can also help cover the cost of legal fees should the homeowner need to go to court to resolve the dispute.
For more on correcting recording errors on deeds, contact the team at Linear Title & Escrow today!